7:46 p.m. | Updated Seagate Technology said Monday that it had ended talks to sell itself to several private equity firms, citing dissatisfaction with the price that was offered.

Instead, Seagate, which makes computer hard drives, will buy back up to $2 billion of its shares.

The announcement followed Seagate's disclosure last month that it had been approached with a potential takeover offer. At the time, individuals briefed on the matter said the bid came from TPG Capital, a former owner of the company, and Kohlberg Kravis Roberts.

Bain Capital had also held talks about potentially joining the buyout consortium.

But weeks after Seagate's disclosure, both K.K.R. and Bain Capital began losing interest in the company, said people briefed on the matter who were not authorized to speak publicly. And while TPG remained interested in completing a leveraged buyout, it ran into difficulty in lining up additional partners.

"We appreciate the interest shown by the private equity firms and our dialogues with them were extensive and thoughtful," Stephen J. Luczo, Seagate's chief executive, said in a statement.

He added that given the boom in the debt markets and improvements in Seagate's business, the company decided instead to pursue the share-buyback program. Seagate said that the market for hard drives had improved and that it expected its coming quarterly revenue to exceed $2.7 billion, with a gross margin of at least 19.5 percent.

Some analysts have questioned Seagate's prospects, given the rise of flash memory, a storage medium found in popular devices like the iPhone and iPad.

Shares in Seagate fell nearly 5.5 percent in after-hours trading to $13.86. The shares had risen about 8.8 percent since the company disclosed its buyout negotiations in October.